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Technology Stocks : Nimbus CD International -- Ignore unavailable to you. Want to Upgrade?

To: Don Dorsey who wrote (1571)	6/2/1998 10:20:00 AM
From: Don Dorsey	Respond to of 1673

It looks like an advertising war might be shaping up in the DVD arena. Nice news for Nimbus. Rival Retailers Shore Up Defenses As Divx Player Is Once Again Delayed By Doug Olenick New York - As the launch for DVD-offshoot technology Divx slips a week beyond previous expectations, retailers committed to DVD continue to shore up their defenses. Since its announcement last year, Divx has stirred a storm of controversy among retailers and DVD manufacturers. Nearly all U.S. retailers have refused to sell the products because the technology's marketer, Digital Video Express, is backed by rival Circuit City. Only The Good Guys!, San Francisco, has signed on. Some DVD-player manufacturers and software publishers, meanwhile, are angry because they feel that with DVD now finally gaining consumer acceptance, the presence of Divx on the market will only confuse customers. With the launch of 10,000 Divx players pushed back to next Monday, the first line of defense for DVD-camp retailers is to have enough DVD product on hand. Regional retailers in the NATM buying group have been promised extra support from DVD hardware and software manufacturers to help the stores fight off Divx, said Warren Mann, NATM's group director. On the advertising front, DVD retailers will battle a $100 million ad campaign slated to accompany Divx's launch. Neil O'Reilly, electronics merchandise manager for NATM member American Appliance, said he plans to combat the blitz by strongly promoting DVD products. He even suggested that while the the Divx campaign may cause customer confusion, "it could help stir interest in DVD." Stores that will carry Divx brushed aside the delay. Sales associates are being trained on the players and are eager for units to ship. But in selling the first devices to consumers, associates face another challenge: Only about one-third of the initially promised 75 Divx titles are likely to be available next week. Divx blends the video-rental experience with DVD's digital audio and sound. The Divx business model requires consumers to pay about $5 for a disposable disc-based movie. Once accessed, the movie must be viewed within 48 hours.